Legal
Title
The legal right to own, use, and transfer a property. Having a clear title means there are no outstanding claims, liens, or disputes about who owns the property. Before closing, a title company or attorney conducts a title search to verify the seller has the legal right to sell and that no unresolved claims exist. Clear title is required before a lender will fund your mortgage.
Why It Matters
Title has real legal implications for your rights and obligations as a homeowner or borrower. Overlooking the legal details of a real estate transaction can lead to costly problems down the road.
If you have questions about title, consider consulting a real estate attorney, especially if you are in a state that requires attorney involvement in real estate closings. A small investment in legal advice can prevent major headaches later.